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"They are not looking to set up a terrorist enclave, but a terrorist state.

He said if Australia agreed to take part in the humanitarian operation, they would do so in "days, not weeks".

Two Australian C130J Hercules jets are stationed in the United Arab Emirates, and Mr Abbott said these would be the planes used in the operation.

However, he said there had been no discussions with the US about potential military deployment.

Mr Abbott will leave Australia tonight for a European visit, travelling to the Netherlands and London.

In the Netherlands he will meet with Dutch Prime Minister Mark Rutte to discuss the MH17 tragedy and said he would also thank the Australian military, police and consular personnel who had helped in the recovery operation and the Australian response effort to the disaster.

Mr Abbott will then travel to London to discuss counter-terrorism operations and the deteriorating security situation in Iraq.

The US has carried out aid drops in the northern region of embattled Iraq, following air strikes on suspected Islamic State bases.

President Barack Obama has warned of a "potential genocide" at Mount Sinjar, with the besieged refugees being of the Kurdish Yazidi religious minority.